Sarbanes Oxley: Matters to be reported to the Audit Committe

Discuss the three matters which Sarbanes-Oxley requires auditors of public companies to report to the audit committee?

Response is 450 words plus references.

Solution Preview

Hello Student,

Let me first start by reminding you that the Sarbanes Oxley Act was created in 2002 with a view to to enact a new set of enhanced accounting standards for all U.S. public company boards, management and public accounting firms. It was established mainly because of a host of corporate accounting scandals which rocked the USA and caused investors to lose millions of dollars. One such major scandal was that of Enron. Under the Sarbanes Oxley Act there are numerous sections, but one section worth mentioning here is section 204 which speaks to "Audit Reports to Audit Committees."

The Audit Committee of most public firms usually oversee the accounting and financial reporting processes of the Company and the audits of the financial statements ...

Solution Summary

This solution first provides you with an overview of what the Sarbanes Oxley Act is and why it was established. It also tells what are the main functions of the Audit Committee, before discussing three matters that auditors are required to report to the Audit Committee. References are also provided.

Foreign countries tend to have less stringent laws than in the US for regulating ethics and standards. How does theSarbanes Oxley Act affect foreign corporations, if at all? Discuss, in thoughtful detail, why these companies should or should not be entitled to be exempt from this rule?

Identify instances of whistleblowing in publicly traded companies within the last 12 months.
1. Describe the key characteristics of a whistleblower, and briefly summarize one (1) researched instance of whistleblowing in one (1) publicly traded company within the last 12 months. Include the details of the issue that the whist

Write 200-words describing the requirements and purpose of theSarbanes-Oxley Act of 2002. What are some of the consequences of non-compliance with the Act? Do you think the Act has solved the problem of unethical behavior in corporate governance?

Need help with answering the questions
Prior to Sarbanes-Oxley, auditing companies had engaged in non-auditing functions with the corporations they audited. Although this had been cause for concern by the SEC, rules were not promulgated until mandated by Sarbanes-Oxley. Now, auditing companies are forbidden to perform non-aud

1. All of the following are parts of corporate governance except:
a. Oversight of management by the board of directors
b. Established processes to provide accountability back to stockholders
c. Whistle-blowing processes
d. Independent review of financial statements by the SEC
2. Which of the following would NOT be a corre

It sometimes seems like there is always an accounting scandal on the news. There have been plenty of investigations into the different businesses that had the accounting scandals. When the investigations are finished, the findings almost always show that an accounting gimmick was used to manipulate the financial statements.
R